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... the ... the ... a total eye ... on them and are ... last year when the financial press has been caught with stories about the alleged fixing of the London interbank offered rate or leave or ... Barclays Bank has paid a four hundred and fifty million dollars settlement with U S and U K regulators ... last Friday the Federal Reserve Bank of New York released a large number of documents related to believe or controversy ... and here to discuss that with me is Journal editorial page editor Paul ... began to see you ... all what have we learned from all these documents that were released on the New York Fed ... Whelan humus in the New York that it would have you believe that what we learned is that they were on the case ... as ... early as two thousand ate they knew was terrible ... and and they were tech ... crime to ... change this baby ... get to look at the documents ... what it appears dogs is that it is that the Fed knew about the US was informed about it frankly by Barclays traders in more than one conversation ... that message filtered up all the way to the top of Tim Geitner now Treasury secretary ... at the time president of the New York Fed in ... May major ... banking regulator ... they knew about it ... but they did very little almost nothing ... guide Geithner sent to ... an e mail message to ... Mervyn King the head of the Bank of England ... other central bay ... basically saying well here's my recommendations on how you can eliminate ... the incentives for Mr. report ... when a man ... misreporting ... is this is a crime a century ... has been the we've been led to believe in the press and through the cross but not and the Sunday story in the meantime go to the to prosecute people criminally ... for the snow ... it's a crime of the century ... there's a disconnect ... well ... what ... might be decline of the center of it I mean and this is I believe more is on average on ... a lot of ... interest rates reported by banks ... of boy it seems to me getting two kinds criminal conspiracy would be up ... at least difficult ... well yes I don't know the statutes and well enough to know what the mind of island look we don't support price fixing nobody to some ... the most economists don't we don't ... I so and we don't support lying to your to report ... information accurately ... the problem with the regulators and bankers goes back to the Chronicle that goes back to the crisis into thousandeight ... when remember banks were under pressure ... and that it ... will be born as a ... symbol of break health uses the price that banks pay to lend to one another ... a lot of banks did one on one to one another as they did know which of the bank's was in trouble ... so ... the degree to which you can keep the price is down to just knew were stronger play ... in other words there was an incentive for the regulators who wanted the public to think the banking system was healthy ... to want ... to live or quotes to the mall and ... so there was so there was that looks from the document says if there was a kind of a meeting of the mines if you would hope ... that when the regulators and the papers but then how can you later four years later ... and I can think or sell ... isn't it so ... did the the New York Fed circulated these documents to other regulators in the system ... one is a variety of documents that they really some of which were transcripts that Barclays God for that provided the phone calls between Barclays traders and executives ... he and Fed officials ... another one was ... of some of was the subject e mail ... that to what the recommendations that Geitner ... sent ... to Mervyn King others to the summary that the Fed put together ... of of the of of of what they see happen ... so it was a variety of things ... aam ... this was and and communications back and forth ... it is a little ... hard to imagine that some ... officials ... as senior is the New York Fed if they actually bought ... something ... hard criminal was taking place here one of this out on and on that that's that's the what if they would if if this was terrible that this behavior was the kind that you would say you get a phone call his all my guy that has to stop ... write ... your banking regulator ... you were to sit down and tampon in the mail and say ... dear Mirvac ... here are some of my recommendations ... to eliminate the incentives to misreport you'd say stop it now use and then the cops he'd say when if this is part of this this this is intolerable stop it ... that's not holiday but hey ... no so the question becomes in my mind that only what statute did they violated was a crock ... whether or not what's what ... if it was a crime ... why would the federal regulators ... so ... let's face it was a about why didn't they get on the case with pencils you indict the bankers now ... seems to me you have to do something but the Raiders who fail to know them ... all right place last fall ... Brett say a commercial break right now will be back shortly to talk about Mitt Romney and his tax returns should be released on ... stay with us ... welcome back to Opinion Journal on it ... well the Obama campaign is demanding that Mitt Romney releases tax returns and going past back twelve years ... governor Romney is refusing to do that ... care discuss the battle of myths tax returns with me is Journal assistant ... editor James Freeman ... it is instituted ... well aam do you think make sure that the release these returns ... twelve years I've that men might be a little much but I certainly think he ought to be playing offense instead of the fence I think he should've released in twenty eleven already ... aam and a ... we've been promised of those coming again so soon when this Academy figures in any get an extension that's why wasn't filed in the spring ... he released twenty ten ... um but the but I think instead of ... trying to ... um ... she'll this in some way are the art of the ... hearing on the side of transparency because I think that those give them an opportunity to say a ... a little that sexism paying and I look at all given to charity and look at all the taxes the companies I invest in or pay what sets of reform well James WellPoint has been raised is so ... if Mitt ... Romney new back into thousandeight he be running again why would you taking care of these matters ... that said we have a ... clip from C-SPAN going back to two thousand to which ruled out right now ... in which the Governor Romney addressed this issue he them even back then in two thousand rules to go and ... I believe very deeply in my personal privacy which is all about this last batch and each day and in this case and ... you made a couple of exceptions from illicit on ... Senator Kennedy what I was running against him boy I told him you gotta release those income tax returns the years he said ... no I value my privacy and ... and I think he was right now was wrong ... as a result I do ... I'd share his view on this um I can release my income tax returns ... and in other conversations about this recently lowered the Governor Romney has raised the point as well that Tom trees the Heinz John Kerry's White ... of what he was running for president ... cheese ... for posting a billionaire ... she is well did not release her tax returns ... well what did it was withdrawing his eleven meaning to apologize for as far as I can tell him from what we've learned from what has been released to Pay dire effective tax rate than the cherries were pink ... so ... he paid his bills so there there's a lot of ... negative ads from the Obama camp about ... various offshore holdings but ... it seems pretty clear from the date of this come out so far no beginning with her about that that that is the tallest exit fees paid millions in taxes ... I don't see with the problem when you get the impression that they're afraid of the Obama campaign which was running a tremendously negative anti Romney ... strategy will simply take this is more distortion fodder ... for all ... that I think it so that is an argument for releasing whatever to release all it wants ... I think there's also an argument for releasing all the months to go ... to ... work today or tomorrow instead of waiting and waiting in the know what's going to happen ... when ... when you're going to be Mitt Romney ... if this is in the fall in this is the centerpiece of new information about your ... various ... accounts and in various locations ... voters need to be it a lot now or take a walk later the problem is gonna go away ... I think the idea that certain that there's going to be some negative attention from the Obama camp the media when every releases he should do it sooner rather than later and he should be defensive because he actually ... can use it does when suggested going back to the ... debates I last winter as a as a moment to teach about the sensible tax last night ... thank launch and fixed it ... presidential candidates normally announced the running mates near the convention in August but the Romney vice presidential pick is forcing itself into the news with a new name floated it seems everyday either Louisiana Governor Bobby Jindal or former Secretary of State Connally is the rights ... our Washington columnist ... Kim Strassel now joins me to discuss what we're calling the beads that I don't them ... I'm the and and did the same ... art canvassing of the two ways to think about this of ... that that that Romney has to make ... there's an argument that cannot be a plain vanilla that ... don't cause any problems that might be somebody like Rob Portman simple into your ... John Thune a senator from North Dakota ... or perhaps he should go for excitement Marco Rubio Chris Christie ... Bob the jungle and a baby Paul Ryan ... do you think it matters ... I think he and his son that what is the real choice you ... are watching all of the media coverage in and getting to a fever pitch and what they is discussing this in terms of those old saws about why she is vice presidential candidate few ... shoes and maybe to deliver their home state or maybe to deliver a region or you ... choose them France's because their foreign policy experience and you don't so much but ... it all back over history there isn't much to suggest at least in the last fifty years that that calculus works ... the real question out there is I think you put your finger on it ... how much excitement can Romney get out of this and taking what what has been forgotten it's been so much focus on Obama in this from the Republicans and that ... with the myth is that the GOP has had its own count them in the last couple of years this place in the party between ... the old guy to your markers that go along get along died and the new reformers in and those are the mistakes that they're trying it in a pick someone has been ... rubbed off on our way and give him this implement or add that one of the reformers out there ... don't ... let sing ... the list I just read ... by a large most of those people reporters the argument gets made Rob Portman was ... George Bush's OMB director of ... one point so he's a spender but ... those of us to talk to pour this would save it ... by and large she's you know on board with changing the direction of the Republican party ... palm ... another argument this made is that ... you want that one of these guys that can help you in the state when you talk that way you do ... come down to Marco Rubio from Florida ... or perhaps of Rob Portman from Ohio ... how important you think since were talk about maybe nine states decide the election it would be to pick somebody who theoretically can deliver their state ... everyone's gonna focus on that but the reality is and that it be that that that guy at the top of the takings was exciting everyone in the country not just in Florida ... not just how high and not somewhere else ... then your chances of winning an election are pretty slim anyway and so even though Latham you can get a read that guy from a certain state in you can hope that they may pull that one for you but if you're me think ... the stock ... when really comes down to it on the bigger issues and that's why ... it's probably what went on to be more interesting to the Romney campaign is whether or not ... Marco Rubio is one of those reformers who by being on the ticket excites all voters not just in Florida but everyone else ... everywhere else or Paul Ryan or Chris Christie ... and I think an anti said a lot of these other guys they're solid in May but now they're working hard for ... Governor Romney in this campaign that's probably can account for them to they would necessarily drag down the ticket that you think he has an opportunity and to bring the taken up ... by catching on some of that enthusiasts ... do you think there's any peer inside the Romney can sense since the Obama ... campaign as I was just discussing ... is ... destroyed enormous amounts of negative but strategy that if they pick somebody controversial it might just doubled the amount of box dot that big of a deal with and in that respect ... what's arguably the rest for the Romney campaign and and I'm talking about the risks to its south in that ... hasn't been a very timid campaign they are plugging along they haven't taken any unnecessary risks and that probably is going to be ... a big consideration of theirs everyone remembers two thousand ate they remember what happened when Sarah pail and mistake how everyone was raving on this that ... the dumpster diving going for her past and are going to be very concerned about taking someone that ... even a solidly vetted ... and what that might mean the weather not that skinny get the Obama campaign a lot more in the nation ... the other side there is an argument that one of the reasons that maybe they're talking about doing this now if he'd yell that out there get the nominee at that the vice presidential pick out there ... let some of that died down so that by the time the convention comes they can be focused on domestic finance I only know which direction they're going yet but I do think that that is a concern DRI Kemp thanks much that is fascinating ... all right we're going take a quick commercial break now when I come back with a talk Steve Morrow Balto attacks on other well for reform law stay with this ... welcome back to Opinion Journal Live mind Dan Henninger ... well well for reform was enacted in nineteen ninety six during the Clinton ministrations it was thought to be one of the hallmarks of the Clinton presidency ... Republicans in Congress over are now yelling that the Obama Department of Health and Human Services is ... cutting the welfare reform law ... here to discuss that with me in our Washington bureau is Steve Moore I don't Steve ... idea ... well this is not something oddly exactly expected what is going on here in this dispute between a congressional Republicans or the wealth where reform law and the Obama administration ... well as by way of background when you're quite right that that when Bill Clinton signed the nineteen ninety six welfare reform bill it was a huge success but don't forget the as ... you wrote about this it was extremely controversial beloved always hated the idea ... of work requirements are ... they caught that it would be cool when her children were down twice ... by its rival Optus never really given up by getting rid of these work requirements either the administration this fermentation is already cutting the number of work requirements for things like food stamps ... now they won at the two I'd go after the fact ... that the very important work requirements for on ... traditional well what we now call we use to call a of the Seaway we now have I ever made ... what what did they do on Thursday would IAG just do exactly ... so that they are allowing states to apply for waivers which will love them to essentially how out of the welfare to work requirements of the states could ... could use other types of procedures to spend this money rather than aam warfare ... that's very dangerous we saw dramatic decline in welfare caseload Swan would put the work requirement and by the way we found a big increase in ... India and Number families that were out working or doing very well financially ... though the administration wants to God that ... by essentially saying states you don't have to comply with the welfare ... to work require ... the onsen or hatch of Utah has raised a question of whether ... Secretary Suby Leo's actually has the authority of the legal authority to ... waive these requirements like this rather than going through Congress ... well that's a great white that I've typed into a free legal authorities about this today dad and am very undecided about whether the administration actually has legal authority to do with some said yes others said no but with very clear ... is that you wanna do something this dramatic really fundamentally change the well paralyze ... you just can't do this without congressional approval write any new just politically I think the press an Israeli startup all Morris nastier because you know ... work requirements while there are very popular with voters voters while to get people are down on the block a handout that don't but they don't want well could become a way of life which the wise before we have those work requirements as anyone you talk to Steve suggested that Tom the higher level of persistent unemployment may have something to do with this I mean if you're on welfare you're probably having as much difficulty finding work is the average person out there who is trying to find a job these days well that's that's the clincher I think about this yet we talked about how these unemployment numbers are distorted by the fact that people drop out of the workforce ... if you if you don't require people I want her to look for work and guess what the heck out of the somewhat anymore so this could be another boy for the Obama administration ... to officially lower the unemployment rate by just having less people on the workforce ... you think God ... and he is Congress were very quickly going to take any action ... he I he I think a well I think they will basically try to invalidate this move by ... Congress and by the way down on other Republican governors this weekend said we don't want this wee wants ... we want stronger work requirements not relax work requirements are I thank the